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Now Google might make a large investment in Airtel after Jio!

Now America’s giant internet Alphabet INC’s Google might make a huge investment of several thousands of crore of rupees into Bharti Airtel. The Alphabet Inc subsidiary has made thousands of crores of investment in Reliance Jio too which is a direct rival. Mukesh Ambani’s Reliance Jio platforms have invested more than rupees 34000 crores in it. According to some TOI sources, it is known that Google which is lead by Sundar Pichai is in the advanced stage of negotiations for the past nearly one year with Airtel. In addition, this investment or deal could be very large. 

For this partnership, the top executives of both companies have been working their best together for the finer aspects of this partnership. In addition to this, both companies’ external and internal legal teams and also their M&A teams are involved fully in the partnership. Yet the other queries are not responded to by Google as well as Airtel. If this deal is successful then it will be a great relief for Sunil Mittal with Airtel who is struggling to avoid all types of financial difficulties. 

Airtel has to face this serious situation very largely due to Mukesh Ambani’s revamp of the industry with the Jio as it introduced some amazing features like free voice calls and very much cheap data rates. After jio was introduced and everyone started switching to jio this resultant pressure forced other companies like Vodafone and Idea to merge with each other. 

Now the further fundraising options and other plants will be discussed in the Airtel board, and the meet is ready to set on Sunday. The meeting will also take into consideration the Airtel financial issue, as at current debt clocking in near rupees 1.6 lakh crore at the end of June. The telecommunication company has tried its best but is unable to raise tariffs freely, and as a result, it has forced them to explore other options. According to another source of TOI, Google’s entry could turn Airtel’s balance sheet around as well as providing strategic assistance with expertise on data analytics. In addition to this Google’s data monetization is very much superior to any other company in the world and this will help Airtel to monetize its data much better to improve the profitability and realizations. 

But it is also said that Google may need very powerful reasons and many comfortable valuations so that they can make an entry in Airtel and this will also possess some strong risk for anyone who will come into this company. So in the future, if anything goes wrong then Google’s credibility will go out in the market even though it will be limited liability. So if Google has to save its name, then the company has to settle all its dues in situations where Airtel will not be able to move ahead, as they may face some financial pressures and as a result of this they may start slipping down. 

But it is sure that if Google would deal with Airtel then this would surely make a strong image of Bharti Airtel in the Indian market which will also lead to its premium reflection. But as mentioned earlier the confirmation from both the companies is still awaited. Airtel had to face a lot of financial issues when Reliance jio came into the market and demand was increasing due to its great ideas. But this burden was increased to an extent when the supreme court ruled in favor of the telecommunication companies in the adjusted gross revenue (AGR) dues issue. So this investment from Google will surely be a great helping hand for Bharti Airtel. 

Sneha Sivakumar
Sneha Sivakumar
I am Sneha Sivakumar, a writer who fell in love with Creative Writing, and loves to provide entertaining articles about famous personalities.
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